Good morning,
The Federal Reserve releases its Survey of Consumer Expectations Monday, which takes the temperature on how Main Street is feeling about prices, jobs, and the economy. Look for it at 11 a.m. ET. Later in the afternoon, at 3 p.m. ET, the Fed will publish data on consumer credit. From China to the U.S. everyone wants to know how demand is doing. China saw exports drop for the third month in a row, putting its 7% growth target in doubt. Tuesday, watch for the JOLTS survey — the Jobs Openings and Labor Turnover report, a measure of how willing workers are to quit their jobs.
Calpers has bad news for money managers. The biggest U.S. pension fund plans to cut around half of the firms that are managing its funds to around 100 from 212. The plan, which will be relayed to the investment board on June 15, will not change Calper’s investment strategy, nor would it affect the percentage of assets being managed internally versus those handled by external managers. The Wall Street Journal (paywall)
Cognitive dissonance: Forecasters lower rate expectations for bonds. Even as most Fed watchers are predicting the central bank will raise short-term rates. Chris Low, chief economist at FTN Financial, trimmed his outlook for the 10-year note to 2.1% from 2.5% by year end. Since April those yields have jumped half a percentage point. Behind the forecast: plenty of slack on prices. Bloomberg
Deutsche Bank is turning to a take over specialist to run the bank. John Cryan helped UBS navigate the financial crisis before joining Deutsche Bank in 2013. He is replacing CEO Anshu Jain who stepped down unexpectedly over the weekend. Cryan has never held an executive position at Deutsche, Europe’s largest bank by assets. Bloomberg
Apple to launch new music service. At its yearly meeting of developers in San Francisco on Monday, the U.S. tech firm is also expected to build apps for its two-month old Apple Watch. A number of analysts, meanwhile, are anticipating that Apple unveil a new music streaming service to keep its foothold in the digital music market amid intense competition from Spotify and other subscription services companies. Reuters
Political upset in Turkey. Voters dealt a blow to long-time President Erdogan, whose party lost its majority in Parliament to a combination of parties dominated by Kurds and liberals who felt left out of Erdogan’s Islamist party.